Entrepreneur pumps £1m into expanding city car club

Published on Tuesday 21 July 2009 09:46

AN ENTREPRENEUR is to spend £1 million expanding a car-sharing firm in Edinburgh after an 80 per cent rise in customers during the last year.

The City Car Club said it had seen a "phenomenal" rise in demand as hard-up motorists put off buying a new car during the recession.

James Finlayson, the Australian businessman who took control of City Car Club in 2007, said he planned to increase the number of vehicles operated in Edinburgh from 90 to 150. The company, which charges 50 for an annual membership, has 3,000 customers in Edinburgh and 10,000 in the UK as a whole.

It has secured 4m in total from investors, a quarter of which will be spent in Edinburgh.

Members rent locally-parked cars which can be booked on the internet or by phone from 3.96 per hour, including 50 miles of free fuel every day.

Mr Finlayson became the firm's chief executive two years ago after originally coming on board as a Dragons' Den-style "business angel".

He said: "There has been rapid growth in membership in Edinburgh as everyone is out to save money in the current economic climate.

"Ditching your car and joining City Car Club saves thousands of pounds a year. With this funding we will be able to expand and provide more cars for our members."

The scheme has been promoted by the city council, which sees it as one solution to cutting congestion in the city centre.

There are currently City Car Club parking spaces in Marchmont, Stockbridge, Leith and the city centre, as well as a number on Cockburn Street used by staff at the City Chambers. Councillor Gordon Mackenzie, the city's transport convener, said: "This is encouraging news for the City Car Club and Edinburgh as a whole.

"The council supports any transport project that offers travellers easy to use and environmentally friendly alternatives to owning or running a car.

"The City Car Club is an excellent example of this approach and deserves the further backing it has received from private sector investors."

The money was raised with assistance from specialist corporate finance advisors Nash Fitzwilliams.

The firm's Alan Nash said huge growth had encouraged investors to back the company, despite the current economic climate.

• www.citycarclub.co.uk, www.edinburgh.gov.uk